Dollar Drops against Majors

By IBT Staff Reporter On 02/08/11 AT 1:11 PM

The U.S. dollar declined against major currencies today according to the Dollar index, where investors were still feeling optimistic over the outlook for global growth amid signs of rising economic activities in the United States, and despite China's decision to hike interest rates for a second time in a month, as investors continued to target higher yielding assets.

The U.S. Dollar index, which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, declined on daily basis to trade at 77.71, compared with the opening level at 77.91, while recording a high of 78.11 and a low of 77.63. Gold prices rose amid the dollar's weakness to reach $1367.00, compared with the opening level at $1350.50 an ounce, and crude oil prices declined to trade at $87.09, compared with the opening level at $87.45.

The Euro inclined against the Dollar today, where the EUR-USD pair is trading at $1.3664, compared with the opening level at $1.3592, while recording a high of $1.3688 and a low of $1.3572. The pair is now trading above the important level at $1.3640 and so long it continues to trade above this level, the target is set at the $1.3750 resistance level, but breaching the support at $1.3640 to the downside would send the pair to the support at $1.3575.

The British Pound declined against the U.S. Dollar, where the GBP-USD pair is now trading at $1.6094, compared with the opening level at $1.6126, while the pair recorded a high of $1.6162 and a low of $1.6027. The pair failed to settle above the $1.6140 level, and accordingly it should continue to drop towards the $1.6055 support level, but breaching the $1.6140 to the upside would reactivate the target at the $1.6345 resistance level.

The U.S. Dollar declined against the Japanese Yen, where the USD-JPY pair is now trading at ¥82.01, compared with the opening level at ¥82.29, while recording a high of ¥82.37 and a low of ¥81.77. The pair is now trading below the ¥82.35 resistance level, which suggests that the way is open to reach the ¥81.05, but the pair must remain below ¥82.35 in order for this bearish scenario to continue.